Approved Foreign Investments, Q4 2013

Foreign Investments in the Philippines

Fourth Quarter and Annual 2013

SUMMARY

Total Approved Foreign Investments (FI), Q4 and Annual 2013

Total foreign investments (FI)1 approved in the fourth quarter of 2013 by seven investment
promotion agencies (IPAs), namely Board of Investments (BOI), Clark Development
Corporation (CDC), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan
Authority (SBMA) as well as Authority of the Freeport Area of Bataan (AFAB),
BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Cagayan Economic Zone
Authority (CEZA), amounted to 132.0 billion, 42.7 percent lower than PhP 230.2 billion
investment commitments in the fourth quarter of 2012.
Meanwhile, total approved FI for the year 2013 reached PhP 274.0 billion, down by 5.4
percent from PhP 289.5 billion pledges recorded in the previous year (Figures 1a and 1b and
Part II Tables 1a, 1b and 1c).

Source: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA Source: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

About This Report

This report is the 66th of a series on quarterly statistics on foreign investments (FI) in the Philippines, Inside
integrating the quarterly statistical reports on FI submitted by the governments investments Part I - Analysis
promotion, administration and regulation agencies. It provides an analysis of the:
(a) Foreign investments (FI) and investments by Filipinos approved by the Board of A. Approved Foreign
Investments (BOI), Clark Development Corporation (CDC), Philippine Economic Zone Investments.... 4 to 11
Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Authority of the Freeport B. Approved Investments of Foreign and
Area of Bataan (AFAB), BOI-Autonomous Region of Muslim Mindanao (BOI-ARMM), and Filipino Nationals.. 11 to 16
Cagayan Economic Zone Authority (CEZA). Approved foreign investments represent
investment commitments and pledges by foreigners regardless of the percentage of C. Approved Investments in the
ownership of the ordinary shares, which may be realized in the near future. Information and Communications Technology
(ICT) Industry ..... 17 to 19
(b) Foreign direct investments (FDI) as presented in the Balance of Payments (BOP) by the
Bangko Sentral ng Pilipinas (BSP). FDI refers to actual foreign investments generated, D. Actual Foreign Direct Investments
in the Balance of Payments 19 to 21
with the foreign investors owning 10 percent or more of the ordinary shares.
Annex A presents the technical notes on the data and compilation methodology while Annex B gives a Part II Statistical Tables
brief background on the Foreign Investment Information System (FIIS) that generates the FI statistics
presented in this report.
Annexes
Notes: (a) Starting with the Q3 2012 Report, foreign investments approved and registered by the
investment promotion agencies (IPAs) is termed approved foreign investments, replacing the term approved foreign direct investments used in
the previous reports. This is to distinguish clearly the approved foreign investments from the FDI being released by the BSP.
(b) Revisions in the previous quarters data are based on the updates provided by the investment promotion agencies.

1
Approved FI represents the amount of proposed contribution or share of foreigners to various potential projects in the country
as approved and registered by the IPAs. This consists of equity, loans and reinvested earnings. (See Annex A Technical
Notes)
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 Approved Foreign Investments, Q4 2013

British Virgin Islands was the top source of approved FI in Q4 2013 as it contributed 35.0
percent or PhP 46.1 billion of the total FI commitments. Japan and the Netherlands occupied
the second and third places, pledging PhP 29.4 billion or 22.3 percent and PhP 14.4 billion or
10.9 percent, respectively, of the total approved FI during the quarter (Part II - Table 2a).

Top investing countries for 2013 were British Virgin Islands, the United States of America
(USA), and Japan, sharing 33.9 percent, 20.2 percent, and 16.3 percent, respectively, of the
total approved FI. Investment pledges from the three countries totaled PhP 192.9 billion (Part
II - Table 2b).

Projects in the transportation and storage industry garnered the largest amount of FI pledges
for Q4 2013 as it stood to receive PhP 53.1 billion or 40.2 percent. Manufacturing came in
second with investment pledges valued at PhP 51.7 billion, accounting for 39.2 percent of the
total FI, followed by administration and support service activities at PhP 14.5 billion or 11.0
percent share. Meanwhile, manufacturing received the largest amount of FI commitments for
the whole year of 2013, contributing PhP 77.6 billion or 28.3 percent of total approved FI (Part
II Tables 3a and 3b).

Foreign Direct Investments in the Balance of Payments (BOP)2, Q4 and Annual 2013

Foreign direct investments (FDI) in the Balance of Payments (BOP) as compiled by the
Bangko Sentral ng Pilipinas (BSP) recorded net inflows of US$ 726.0 million in October to
December 2013, higher by 56.1 percent than US$ 465.0 million recorded in the same period
of the previous year (Part II Table 14a). Meanwhile, net FDI inflows in 2013 amounted to
US$ 3.9 billion, registering an increase of 38.0 percent from US$ 2.8 billion posted in 2012
(Part II Table 14b).

In peso terms, FDI in the BOP for October to December 2013 posted a net inflow of PhP 31.6
billion, 65.0 percent higher than PhP 19.2 billion in the same period of the previous year (Part
II Table 13a). For the year 2013, FDI in the BOP increased by 35.5 percent, with a net
inflow of PhP 162.0 billion from a net inflow of PhP 119.6 billion in 2012 (Part II Table 13b).

Approved Investments of Foreign and Filipino Nationals, Q4 and Annual 2013

Approved investments of foreign and Filipino nationals in the fourth quarter of 2013 totaled
PhP 235.7 billion, 28.6 percent lower than PhP 330.1 billion registered in the same period of
the previous year. Pledges from Filipino nationals stood at PhP 103.7 billion which accounted
for 44.0 percent of the total approved investments during the quarter (Part II Table 6a).

Summing all quarters, investment pledges of foreign and Filipino nationals amounted to
PhP 754.0 billion in 2013, up by 8.0 percent from PhP 698.2 billion committed a year ago.
(Part II Table 6b).

Projected Employment from Approved Investments of Foreign and Filipino Nationals,

Q4 and Annual 2013

Foreign and Filipino ventures approved by the seven IPAs during the fourth quarter of 2013
are expected to create 46,997 jobs, inching up by 4.0 percent from previous years projected
employment of 45,198 jobs. Out of these anticipated jobs, 82.1 percent or 38,567 jobs would
come from projects with foreign interest (Part II Tables 4a & 8a).
2
Refers to net FDI flows consisting of non-residents net equity capital (placements less withdrawals) plus reinvestment of
earnings plus debt instruments (net intercompany borrowings).
2
 Approved Foreign Investments, Q4 2013

Projected employment from approved foreign and Filipino investments for 2013 totaled
161,998 jobs, an increase of 9.8 percent from 147,482 jobs recorded in the same period a
year ago (Part II Table 8b).

Approved Investments of Foreign and Filipino Nationals in Information and

Communications Technology (ICT), Q4 and Annual 2013

Total investment pledges in information and communications technology (ICT) of foreign and
Filipino nationals in the fourth quarter of 2013 totaled PhP 17.1 billion, lower by 59.7 percent
compared to the PhP 42.4 billion recorded in Q4 2012. Projects in ICT accounted for 7.3
percent of total approved investments of foreign and Filipino nationals during the quarter (Part
II Tables 6a and 9a).

Foreign nationals remained as the major source of investment pledges in ICT for Q4 2013,
committing PhP 16.1 billion or 94.3 percent of the total pledges in ICT. Foreign investments in
ICT accounted for 12.2 percent of the total FI approved during the period (Part II Tables 9a
and 10a).

Proposed investments of foreign and Filipino nationals in ICT in 2013 reached PhP 31.0 billion
from PhP 49.7 billion in 2012 or a decline of 37.6 percent (Part II Table 9b).

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 Approved Foreign Investments, Q4 2013

Part I ANALYSIS

A. Approved Foreign Investments (FI)

A.1 Total Approved FI

A.1.1 Fourth Quarter 2013

Foreign investment applications received and approved in the fourth quarter of 2013 by the
Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BOI), Cagayan
Economic Zone Authority (CEZA), Clark Development Corporation (CDC), Philippine
Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA) declined by
42.7 percent, to PhP 132.0 billion in the fourth quarter of 2013 from PhP 230.2 billion in the
same period of the previous year.

Among the investment promotion agencies (IPAs), CEZA posted the highest increase in FI
commitments, which is 21 times the PhP 20.2 million in Q4 2012, resulting to PhP 438.8
million in Q4 2013. FI approvals from AFAB, meanwhile, increased by almost nine folds to
PhP 2.0 billion in Q4 2013 from PhP 224.8 million in Q4 2012. However, FI approvals by
PEZA, CDC, and SBMA, suffered double-digit declines of 56.7 percent, 56.0 percent, and
47.1 percent, respectively. Investment pledges approved by BOI also dipped by 4.0 percent
(Table A and Part II Table 1b).

The bulk of FI applications came from PEZA, cutting in 56.1 percent or PhP 74.1 billion pesos
of the total FI. Trailing far behind is BOI sharing 40.9 percent or PhP 54.0 billion worth of
investments. AFAB contributed 1.5 percent or PhP 2.0 billion, while CDC, CEZA, SBMA and
BOI-ARMM had a combined share of 1.4 percent of the total FI.

Table A
Total Approved FI by Investment Promotion Agency (in million pesos)
Fourth Quarter, 2012 and 2013

Approved FI Percent to Growth Rate

Agency
Total Q4 2013 Q4 2012 - Q4 2013
Q4 2012 Q4 2013
AFAB 224.8 2,012.0 1.5 795.2
BOI 56,201.6 53,960.7 40.9 (4.0)
BOI ARMM - 322.0 0.2 -
CDC 2,331.1 1,026.7 0.8 (56.0)
CEZA 20.2 438.8 0.3 2072.5
PEZA 171,221.0 74,084.5 56.1 (56.7)
SBMA 216.7 114.6 0.1 (47.1)
Total 230,215.4 131,959.3 100.0 (42.7)
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

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 Approved Foreign Investments, Q4 2013

A.1.2 January to December 2013

Foreign investment applications approved in 2013 reached PhP 274.0 billion, down by 5.4
percent from PhP 289.5 billion in 2012. PEZA bested all other IPAs as it shared 53.9 percent
or PhP 147.7 billion of the total approved FI. BOI and AFAB came in second and third with
PhP120.6 billion worth of investments or 44.0 percent and PhP 2.1 billion or 0.8 percent,
respectively. CDC accounted for 0.7 percent or PhP 2.0 billion while SBMA shared PhP 668.8
million worth of investments.

AFAB registered the highest increase in FI approvals, around five times the PhP 390.6 million
approved in 2012, followed by CEZA, expanding by four folds from PhP 128.9 million to PhP
599.8 million in 2013. Likewise, FI approvals by BOI and SBMA also increased by 62.9
percent and 2.4 percent, respectively. Meanwhile, FI commitments approved by CDC and
PEZA suffered double-digit declines of 55.9 percent and 29.5 percent, respectively (Table B
and Part II Table 1c).

Table B
Total Approved FI by Investment Promotion Agency (in million pesos)
January-December 2012 and 2013

Approved FI Percent to Growth Rate

Agency
Total 2013 2012 -2013
2012 2013
AFAB 390.6 2,120.7 0.8 442.9
BOI 74,064.8 120,646.3 44.0 62.9
BOI ARMM 426.8 322.0 0.1 (24.5)
CDC 4,504.4 1,986.0 0.7 (55.9)
CEZA 128.9 599.8 0.2 365.2
PEZA 209,376.6 147,670.8 53.9 (29.5)
SBMA 652.3 668.0 0.2 2.4
Total 289,544.4 274,013.5 100.0 (5.4)
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

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 Approved Foreign Investments, Q4 2013

Figure 2a
Total Approved Foreign Investments (in billion pesos)
First Quarter 1996 to Fourth Quarter 2013

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

Figure 2b
Total Approved Foreign Investments (in billion pesos)
1996 to 2013

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

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 Approved Foreign Investments, Q4 2013

A.2 Top Performing Countries

A.2.1 Fourth Quarter 2013

Top prospective investing countries for the fourth quarter of 2013 include British Virgin
Islands, Japan, and the Netherlands. British Virgin Islands is the first on the list, committing
PhP 46.1 billion or 35.0 percent of the total approved FI in Q4 2013. The amount is more than
14 times the PhP 3.1 billion it pledged in the same period of the previous year (Figure 3a and
Part II - Table 2a). British Virgin Islands prospective ventures are mostly in transportation and
storage, administrative and support service activities, and manufacturing.

Japan and the Netherlands accounted for 22.3 percent or PhP 29.4 billion, and 10.9 percent
or PhP 14.4 billion, respectively, majority of which are intended to finance projects in
manufacturing, transportation and storage, electricity, gas and air conditioning supply, and
administrative and support service activities.

Figure 3a
Total Approved FI by Country of Investor
Fourth Quarter 2013

Germany
USA Singapore 2.3%
3.7% Australia
6.0% Cayman Islands
Canada 1.5%
Netherlands 5.5% Korea 1.7% Taiwan
10.9% 3.2% 1.3%
Others
6.6%

Japan
22.3% British Virgin
Islands
35.0%

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

A.2.2 January to December 2013

For the year 2013, the hefty investments of PhP 92.8 billion pledged by British Virgin Islands
placed it at number one, with a share of 33.9 percent, followed by USA, committing PhP 55.3
billion or 20.2 percent, and Japan cutting in PhP 44.8 billion or 16.3 percent. British Virgin
Islands also registered the highest increase in FI commitments, from PhP 3.7 billion in 2012
(Figure 3b below and Part II Table 2b).

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 Approved Foreign Investments, Q4 2013

Figure 3b
Total Approved FI by Country of Investor
2013

British Virgin
Others Islands
9.8% 33.9%

Australia
1.6% USA
20.2%
Cayman
Islands
2.7%
Korea
3.1%
Netherlands Japan
Singapore 16.3%
9.1%
3.4%

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

A.3 Top Performing Industries

A.3.1 Fourth Quarter 2013

Around 40.2 percent of the total FI approved in Q4 2013 are intended to fund projects in the
transportation and storage sector. The foreign investments for the said sector, valued at PhP
53.1 billion, were 6.2 percent higher than the amount committed in Q4 2012. Joining
transportation and storage among the top recipients of approved FI were manufacturing,
which accounted for 39.2 percent of FI for the quarter, receiving PhP 51.7 billion, followed by
administrative and support service activities with a committed amount of PhP 14.5 billion or
11.0 percent share. The sector which registered the fastest growth in Q4 2013 was electricity,
gas, steam and air conditioning supply, which grew by eight folds to PhP 5.6 billion from PhP
671.9 million in Q4 2012. (Table C and Part II Table 3a).

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 Approved Foreign Investments, Q4 2013

Table C
3
Total Approved FI by Industry (in million pesos)
Fourth Quarter, 2012 and 2013

Approved FI Percent to Growth Rate

Industry Total Q4 Q4 2012 -
Q4 2012 Q4 2013
2013 Q4 2013

A. Agriculture, forestry and fishing 2,328.2 2,649.6 2.0 13.8

B. Mining and quarrying - 175.0 0.1 -
C. Manufacturing 136,787.4 51,711.8 39.2 (62.2)
D. Electricity, gas, steam and air 671.9 5,567.8 4.2 728.7
conditioning supply
E. Water supply; sewerage, waste 350.1 130.5 0.1 (62.7)
management and remediation
activities
F. Construction 1,108.4 - 0.0 (100.0)
G. Wholesale and retail trade; repair 82.6 41.1 0.0 (50.2)
of motor vehicles and motorcycles

H. Transportation and storage 49,987.6 53,087.2 40.2 6.2

I. Accommodation and food service 6,338.3 308.4 0.2 (95.1)
activities
J. Information and communication 14,470.3 1,098.8 0.8 (92.4)
K. Financial and insurance activities 6.6 8.6 0.0 30.0
L. Real estate activities 5,720.3 1,832.5 1.4 (68.0)
M. Professional, scientific and 153.6 622.9 0.5 305.5
technical activities
N. Administrative and support service 11,340.7 14,462.3 11.0 27.5
activities
O. Public administration and defense; 8.2 8.8 0.0 7.4
compulsory social security
P. Education 450.3 242.9 0.2 (46.1)
Q. Human health and social work 0.8 - 0.0 (100.0)
activities
R. Arts, entertainment and recreation 410.0 4.7 0.0 (98.9)

S. Other service activities - 6.3 - -

Total 230,215.4 131,959.3 100.0 (42.7)
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

3
Starting with Q1 2012 FDI report, the 2009 Philippine Standard Industrial Classification (PSIC) has been adopted in classifying the
industries.

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 Approved Foreign Investments, Q4 2013

A.3.2 January to December 2013

FI commitments intended for projects in the manufacturing industry accounted for more than a
quarter or 28.3 percent of the total investment pledges in 2013, receiving the highest pledges
among the industries, for a total of PhP 77.6 billion. However, FI for manufacturing declined
by 54.3 percent from PhP 169.5 billion in 2012 (Table D and Part II Table 3b).
The industry which received the second highest amount of FI approvals was the electricity,
gas, steam, and air conditioning supply, which received a total of PhP 74.5 billion in 2013,
contributing 27.2 percent. Investment pledges for this sector grew by more than 13 times
compared to the PhP 5.7 billion the industry received in 2012. Projects in the transportation
and storage sector received the third largest amount of FI commitments for 2013 at PhP 55.5
billion or 20.2 percent of the total FI.

Table D
3
Total Approved FI by Industry (in million pesos)
January - December 2012 and 2013

Approved FI
Percent to Growth Rate
Industry
2012 2013 Total 2013 2012 - 2013

A. Agriculture, forestry and fishing 4,514.3 2,678.8 1.0 (40.7)

B. Mining and quarrying 229.6 1,976.7 0.7 761.1
C. Manufacturing 169,531.2 77,557.6 28.3 (54.3)
D. Electricity, gas, steam and air 5,716.5 74,497.3 27.2 1,203.2
conditioning supply
E. Water supply; sewerage, waste 1,087.4 132.2 0.0 (87.8)
management and remediation activities
F. Construction 3,931.9 8.7 0.0 (99.8)
G. Wholesale and retail trade; repair of 280.5 155.0 0.1 (44.7)
motor vehicles and motorcycles
H. Transportation and storage 53,032.8 55,468.1 20.2 4.6
I. Accommodation and food service 8,049.0 25,380.8 9.3 215.3
activities
J. Information and communication 15,441.2 3,560.8 1.3 (76.9)
K. Financial and insurance activities 80.7 48.6 0.0 (39.9)
L. Real estate activities 9,997.0 6,434.7 2.3 (35.6)
M. Professional, scientific and technical 182.8 632.0 0.2 245.8
activities
N. Administrative and support service 16,313.6 24,567.6 9.0 50.6
activities
O. Public administration and defense; 164.0 31.6 0.0 (80.7)
compulsory social security
P. Education 540.1 254.7 0.1 (52.8)
Q. Human health and social work 0.8 1.2 0.0 38.7
activities
R. Arts, entertainment and recreation 414.5 579.6 0.2 39.8
S. Other service activities 36.4 47.8 0.0 31.2
Total 289,544.3 274,013.5 100.0 (5.4)
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

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 Approved Foreign Investments, Q4 2013

A.4 Projected Employment from Approved FI

A.4.1 Fourth Quarter 2013

Foreign investment projects approved by the IPAs in the fourth quarter of 2013 are seen to
generate 38,567 jobs, 23.1 percent higher than the 31,342 jobs expected in the same period a
year ago (Part II Table 4a).

PEZA-approved FI projects recorded the most number of prospective jobs at 29,907,

accounting for 77.5 percent of the total jobs expected for the quarter. Projects approved by
the BOI accounted for 4,848 jobs or 12.6 percent while CDC shared 2,574 jobs or 6.7 percent.
FI projects from AFAB, BOI-ARMM, CEZA and SBMA jointly accounted 3.2 percent of the
total jobs to be generated in Q4 2013.

Among the IPAs, CEZA posted the highest increase in the projected employment, about three
times the 54 jobs recorded in Q4 2012, resulting to 180 jobs in Q4 2013. Likewise, expected
employment from PEZA and CDC-approved projects, meanwhile, grew by 22.1 percent and
86.5 percent, respectively. Projected employment from SBMA and BOI, meanwhile, declined
by 32.3 percent and 8.4 percent, respectively.

A.4.2 January to December 2013

A total of 132,700 jobs are expected to be generated from the FI projects approved in 2013,
up by 18.5 percent from previous years projected employment of 111,953. PEZA consistently
topped the IPAs in terms of projected employment from FI projects, accounting for 80.0
percent or 106,219 new jobs. The prospective jobs from PEZA rose by 28.0 percent compared
to 83,079 jobs committed in 2012. Meanwhile, BOI-approved FI projects are seen to generate
15,778 jobs or 11.9 percent, followed by CDC with 6,429 jobs or 4.8 percent of the projected
employment. SBMA, CEZA, BOI-ARMM and AFAB have the combined share of 4,274 jobs
during the period (Part II - Table 4b).

CDC recorded the highest increase at 176.5 percent in terms of job generation, from 2,325
jobs in 2012 to 6,429 jobs. While AFAB, CEZA, and SBMA also posted increases, projected
employment from BOI-approved projects declined by 32.3 percent.

B. Approved Investments of Foreign and Filipino Nationals

B.1 Total Approved Investments of Foreign and Filipino Nationals

B.1.1 Fourth Quarter 2013

Approved investments of Filipino and foreign nationals reached PhP 235.7 billion in the fourth
quarter of 2013, a decline of 28.6 percent from PhP 330.1 billion committed in the same
period in 2012. About 44.0 percent of this amount would be supplied by ventures from Filipino
investors. Investments of Filipino nationals approved in Q4 2013, valued at PhP 103.7 billion,
increased by 3.8 percent from PhP 99.9 billion in Q4 2012. On the other hand, approved
foreign investments during the period went down by 42.7 percent (Figure 4 and Part II Table
6a).

More than half or 57.9 percent of investment commitments made by foreign and Filipino
nationals for the quarter were coursed through PEZA, which approved PhP 136.5 billion worth
of investment pledges. The amount, however, was 36.0 percent lower than PhP 213.4 billion
approved in Q4 2012 (Part II - Table 5a).

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 Approved Foreign Investments, Q4 2013

Investment pledges of foreign and Filipino nationals approved by the BOI and CDC also
declined by 16.6 percent and 50.2 percent, respectively. Meanwhile, FI projects approved by
AFAB and SMBA grew by 216.8 percent and 4.4 percent, respectively.

Figure 4
Total Approved Investments of Foreign and Filipino Nationals
Fourth Quarter 2012 and 2013

350.0 330.1 Filipino Foreign

300.0
99.9
250.0 235.7

200.0
in billion pesos

103.7

150.0
230.2
100.0
132.0
50.0

-
Q4 2012 Q4 2013

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

B.1.2 January to December 2013

Investment commitments from both foreign and Filipino nationals amounted to PhP 754.0
billion, up by 8.0 percent from PhP 698.3 billion in the previous year. The bulk or 63.7 percent
of investments approved during the period came from Filipino investors valued at PhP 480.0
billion. While approved investments from Filipino nationals went up by 17.4 percent during
the year, amount of committed foreign investments decreased by 5.4 percent (Part II Table
6b).

In terms of share, BOI received PhP 466.0 billion worth of investment pledges, accounting for
61.8 percent, followed by PEZA with 36.6 percent or PhP 276.1 billion. AFAB, BOI-ARMM
CDC, SBMA, and CEZA would get a total of PhP 11.9 billion or 1.6 percent during the period
(Part II Table 5b).

B.2 Total Approved Investments of Foreign and Filipino Nationals by Industry

B.2.1 Fourth Quarter 2013

Bulk of the investment pledges of foreign and Filipino nationals committed in the fourth quarter
of 2013 were intended to fund projects in the manufacturing industry, estimated at PhP 71.8
billion or 30.5 percent of the total approved investments. Of this amount, 28.0 percent or
PhP 20.1 billion would come from Filipino investors.

The transportation and storage sector would receive 28.1 percent of the total investments for
the quarter or PhP 66.2 billion, 19.9 percent of which would come from Filipino investors. Real

12
 Approved Foreign Investments, Q4 2013

estate activities ranked third with investment pledges from foreign and Filipino nationals
amounting to PhP 25.7 billion, accounting for 10.9 percent (Figure 5a and Part II Tables 3a
and 7a).

Figure 5a
Total Approved Investments of Foreign and Filipino Nationals, by Industry
Fourth Quarter 2013

H. Transportation and
storage
28.1%

L. Real estate
activities
10.9%
C. Manufacturing
30.5%

Others I. Accommodation
3.5% and food service
D. Electricity, gas, activities
N. Administrative and steam and air 10.3%
support service conditioning supply
activities 10.2%
6.5%

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

B.2.2 January to December 2013

Topping the list of recipients of investment intentions from both foreign and Filipino nationals
during the year 2013 was electricity, gas, steam and air conditioning supply sector, with a
share of 45.8 percent of the total investments or PhP 345.7 billion, followed by real estate
activities with 15.2 percent or 114.7 billion. Investments in manufacturing accounted for the
third largest amount with PhP 107.3 billion or 14.2 percent of total investments. Potential
investments for electricity, gas, steam and air conditioning supply grew by 120.4 percent while
investments for both the real estate activities and manufacturing declined by 4.4 percent and
47.3 percent, respectively (Figure 5b and Part II Table 7b).

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 Approved Foreign Investments, Q4 2013

Figure 5b
Total Approved Investments of Foreign and Filipino Nationals, by Industry
2013

L. Real estate
activities
D. Electricity, gas, 15.2% C. Manufacturing
steam and air
14.2%
conditioning supply
45.8%

H. Transportation
and storage
10.3%
Others I. Accommodation
2.4% and food service
N. Administrative and activities
support service 8.5%
activities
3.5%

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

B.3 Projected Employment from Approved Investments of Foreign and Filipino

Nationals

B.3.1 Fourth Quarter 2013

Projects from foreign and Filipino investors approved in the fourth quarter of 2013 are seen to
generate 46,997 jobs, 4.0 percent higher than the 45,198 potential jobs in 2012. Of the
projected employment during the quarter, 67.7 percent would come from PEZA with 31,797
prospective jobs. BOI would supply 23.1 percent or 10,860 jobs while SBMA, CDC, AFAB
BOI-ARMM and CEZA are expected to jointly generate 4,340 prospective jobs (Part II Table
8a).

CEZA registered the highest increase in potential jobs, increasing by 159.3 percent, followed
by CDC and PEZA, with projected employment growing by 76.5 percent and 26.2 percent,
respectively.

B.3.2 January to December 2013

For the year 2013, a total of 161,998 jobs are expected to be generated from approved
investments of foreign and Filipino nationals. About two-thirds or 67.8 percent or 109,914 jobs
would come from investment pledges coursed through PEZA, followed by BOI at 23.5 percent
or 38,100 jobs. CDC would account for 4.4 percent or 7,073 jobs while AFAB and SBMA
would account for 1.5 percent or 2,408 jobs and 1.3 percent or 2,170 jobs, respectively.
Meanwhile, BOI-ARMM and CEZA would jointly share 1.4 percent or 2,333 jobs (Part II
Table 8b).

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 Approved Foreign Investments, Q4 2013

B.4 Projected Employment from Approved Investments of Foreign and Filipino

Nationals by Industry

B.4.1 Fourth Quarter 2013

Of the 46,997 potential jobs expected from foreign and Filipino projects approved during the
quarter, manufacturing would supply 40.9 percent or 19,241 jobs, followed by administrative
and support service activities at 35.1 percent or 16,500 new jobs. Approved investments in the
real estate activities are expected to bring in 4,694 jobs or 10.0 percent of the total expected
jobs. Of the three industries, administrative and support service activities grew the fastest in
terms of employment generation, expanding by 71.8 percent in Q4 2013. Projected
employment in manufacturing grew by 31.8 percent while expected employment in real estate
activities declined by 32.9 percent (Table E).

Table E
Projected Employment from Total Approved Investments by Industry
Fourth Quarter, 2012 and 2013
Projected Employment Percent to Growth Rate
Industry1 Total Q4 Q4 2012 -
Q4 2012 Q4 2013
2013 Q4 2013

A. Agriculture, forestry and fishing 331 1,910 4.1 477.0

B. Mining and quarrying - 500 - -
C. Manufacturing 14,597 19,241 40.9 31.8
D. Electricity, gas, steam and air 328 321 0.7 (2.1)
conditioning supply
E. Water supply; sewerage, waste 28 28 0.1 0.0
management and remediation activities
F. Construction 1,150 0.0 (100.0)
G. Wholesale and retail trade; repair of 251 566 1.2 125.5
motor vehicles and motorcycles
H. Transportation and storage 616 1,116 2.4 81.2
I. Accommodation and food service 971 1,606 3.4 65.4
J. Information and communication 9,675 185 0.4 (98.1)
K. Financial and insurance activities 1 6 0.0 500.0
L. Real estate activities 6,991 4,694 10.0 (32.9)
M. Professional, scientific and technical 280 13 0.0 (95.4)
activities
N. Administrative and support service 9,603 16,500 35.1 71.8
activities
O. Public administration and defense; - - - -
compulsory social security
P. Education 61 43 0.1 (29.5)
Q. Human health and social work 7 25 0.1 257.1
activities
R. Arts, entertainment and recreation 308 207 0.4 (32.8)

S. Other service activities - 36 - -

Total 45,198 46,997 98.9 4.0
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

15
 Approved Foreign Investments, Q4 2013

B.4.2 January to December 2013

Out of the 161,998 potential jobs from prospective projects of foreign and Filipino investors
approved in 2013, manufacturing, administrative and support service activities, and real estate
activities are expected to supply 39.8 percent, 30.3 percent and 12.4 percent, respectively
(Table F). The number of expected jobs grew by 13.2 percent for manufacturing, 37.0 percent
for administrative and support services, and declined by 5.2 percent for real estate activities
The rest of the potential jobs totaling 28,414 or 17.5 percent is shared by the other industries,
such as agriculture, forestry and fishing; mining and quarrying; electricity, gas, steam and air
conditioning supply; water supply, sewerage, waste management and remediation activities;
construction; wholesale and retail trade and repair of motor vehicles and motorcycles;
transportation and storage; accommodation and food service activities; public administration
and defense; compulsory social security; information and communication; financial and
insurance activities; professional, scientific and technical activities; education; human health
and social work activities; arts, entertainment and recreation; and other service activities.

Table F
Projected Employment from Total Approved Investments by Industry
January - December 2012 and 2013

Projected Employment
1 Percent to Growth Rate
Industry
2012 2013 Total 2013 2012 - 2013

A. Agriculture, forestry and fishing 2,321 3,508 2.2 51.1

B. Mining and quarrying 1,024 1,347 0.8 31.5
C. Manufacturing 56,924 64,416 39.8 13.2
D. Electricity, gas, steam and air 1,536 2,587 1.6 68.4
E. Water supply; sewerage, waste 859 73 0.0 (91.5)
F. Construction 2,181 75 0.0 (96.6)
G. Wholesale and retail trade; repair of 1,028 1,402 0.9 36.4
motor vehicles and motorcycles
H. Transportation and storage 3,835 4,824 3.0 25.8
I. Accommodation and food service 3,668 7,057 4.4 92.4
activities
J. Information and communication 15,797 6,297 3.9 (60.1)
K. Financial and insurance activities 11 78 0.0 609.1
L. Real estate activities 21,173 20,078 12.4 (5.2)
M. Professional, scientific and technical 410 150 0.1 (63.4)
activities
N. Administrative and support service 35,820 49,090 30.3 37.0
activities
O. Public administration and defense; 2 - 0.0 (100.0)
compulsory social security
P. Education 192 141 0.1 (26.6)
Q. Human health and social work 31 181 0.1 483.9
activities
R. Arts, entertainment and recreation 386 449 0.3 16.3
S. Other service activities 284 245 0.2 (13.7)
Total 147,482 161,998 100.0 9.8
Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

16
 Approved Foreign Investments, Q4 2013

C. Approved Investments in the Information and Communications Technology (ICT)

Industry

C.1 Total Approved FI in ICT

C.1.1 Fourth Quarter 2013

Foreign investments in ICT declined by 44.1 percent to PhP 16.1 billion in Q4 2013 from
PhP 28.8 billion in Q4 2012. Projects in ICT committed by foreign investors accounted for 12.2
percent of the total approved FI in the fourth quarter of 2013 (Part II Table 10a).

PEZA remained as the top recipient of FI in ICT in Q4 2013, receiving 99.8 percent of the total
FI pledges in ICT (Part II Tables 9a).

C.1.2 January to December 2013

Potential foreign investments in ICT in 2013 went down by 17.6 percent, to PhP 28.6 billion in
2013 from PhP 34.8 billion in 2012 (Part II Table 9b).

Foreign investments in ICT accounted for 10.5 percent of the total FI approved during the
period (Part II Tables 10b and 1c).

C.2 Total Approved Investments in ICT of Foreign and Filipino Nationals

C.2.1 Fourth Quarter 2013

Pledges in ICT investments made by foreign and Filipino nationals declined by 59.7 percent to
Php 17.1 billion in Q4 2013, from PhP 42.4 billion in the same quarter of 2012. Foreign
nationals remained as the major source of investment pledges in ICT, accounting for 94.3
percent of the total investments in ICT of foreign and Filipino nationals. Meanwhile, Filipino
investors committed PhP 982.4 million or 5.7 percent of the total ICT investments (Table G
and Part II Table 9a).

Prospective ventures in ICT by foreign and Filipino nationals accounted for 7.3 percent of total
approved investments in Q4 2013 (Part II Tables 9a and 5a).

Table G
Total Approved Investments in ICT by Foreign and Filipino Nationals
Fourth Quarter 2012 and 2013
(in million pesos)

Approved Investments in ICT Percent to Growth Rate

Nationality Q4 2012 Q4 2013 Total Q4 Q4 2012 -
2013 Q4 2013
Filipino 13,596.6 982.4 5.7 (92.8)
Foreign 28,841.7 16,127.3 94.3 (44.1)
Total 42,438.3 17,109.7 100.0 (59.7)

Sources of data: AFAB, BOI, BOI-ARMM, CDC, PEZA, SBMA, CEZA

17
 Approved Foreign Investments, Q4 2013

C.2.2 January to December 2013

Prospective ventures in ICT committed by foreign and Filipino nationals declined by 37.6
percent or PhP 31.0 billion in 2013 from Php 49.7 billion worth of pledges in 2012. (Part II -
Table 9b). Potential investments in ICT by foreign nationals accounted for 92.3 percent while
ICT investments by Filipinos accounted for 7.7 percent.

Of the total amount of investments committed by foreign and Filipino nationals in 2013, share
of ICT would be 4.1 percent (Part II - Tables 9b and 5b).

C.3 Total Approved Investments in ICT of Foreign and Filipino Nationals by ICT Sub-
Industry

C.3.1 Fourth Quarter 2013

Projects in IT Services became the main recipient of investment pledges in ICT of foreign and
Filipino nationals in Q4 2013 as it stood to receive PhP 16.4 billion of total ICT projects or 93.6
percent. Information and communication and manufacturing accounted for 5.7 percent and
0.7 percent, respectively. (Part II Table 11a).

C.3.2 January to December 2013

Of the PhP 31.5 billion committed by foreign and Filipino investors to fund projects in ICT in
2013, 86.0 percent or PhP 27.1 billion would go to IT services. Information and
communication came in second at PhP 4,273.2 billion, accounting for 13.6 percent. Trailing
behind were manufacturing and trade with a combined share of 0.4 percent or PhP 123.0
million of the total ICT pledges committed in 2013 (Part II Table 11b).

C.4 Projected Employment from Approved Investments in ICT of Foreign and

Filipino Nationals by ICT Sub-Industry

C.4.1 Fourth Quarter 2013

Approved investments of foreign and Filipino nationals in ICT are anticipated to create 16,628
new jobs in Q4 2013, lower by 13.0 percent than the 19,109 jobs expected in Q4 2012. IT
services is expected to supply 16,488 new jobs or 99.2 percent of total employment in ICT or
(Table H below and Part II Table 12a).

Projected employment from ICT industry accounted for 35.4 percent of total jobs expected
from the investment projects of foreign and Filipino nationals approved in the fourth quarter of
2013 (Part II Tables 12a and 8a).

18
 Approved Foreign Investments, Q4 2013

Table H
Projected Employment from Approved Investments in ICT by ICT Sub-Industry
Fourth Quarter 2012 and 2013

Projected Employment in ICT Percent to Growth Rate

ICT Sub-industry Total Q4 2012 -
Q4 2012 Q4 2013 Q4 2013 Q4 2013

Information and 9,675 140 0.8 (98.6)

communication
IT Services 9,434 16,488 99.2 74.8
Manufacturing - - - -
Trade - - - -
Total 19,109 16,628 100.0 (13.0)

Sources of data: AFAB, BOI, BOI-ARMM, CDC, CEZA, PEZA, SBMA

C.4.2 January to December 2013

Projected employment from ICT projects in 2013 totaled 54,749 jobs, 6.4 percent higher than
the 51,448 jobs expected in the previous year. IT services is expected to absorb 48,488 jobs
or 88.6 percent of the expected employment while 6,254 jobs or 11.4 percent would be from
information and communication (Part II Table 12b).

D. Actual Foreign Direct Investments in the Balance of Payments4

D.1 Total BOP FDI in US Dollars and Philippine Pesos5

D.1.1 October to December 2013

As reported by the BSP, net Foreign Direct Investments (FDI) inflows for Q4 2013 reached
US$ 726.0 million. The amount was 56.1 percent higher than the net inflows of US$ 465.0
million recorded in the same period of the previous year. Equity other than reinvestment of
earnings posted positive balances of US$ 20.0. On the other hand, reinvestment of earnings
and net debt instruments recorded positive US$ 162.0 million and US$ 542.0 million,
respectively (Part II Table 14a).

4
BSP media release dated March 10, 2014
5
Using monthly averages: Pesos per US Dollar Rate downloaded from BSP website
19
 Approved Foreign Investments, Q4 2013

Figure 6a
Balance of Payments FDI (in million US$)
October to December 2012 and 2013

800
726.0

700 Q4 2012 Q4 2013

600
542.0

500
in million US$

400
465.0

300 273.0

200 162.0
129.0

100 63.0
20.0

Non-Residents' Equity other than Reinvestment of Debt instruments,

investments reinvestment of earnings net
in the Phils. earnings

Source: BSP

In peso terms, FDI net inflows for the period October to December 2013 amounted to PhP
31.6 billion, 65.0 percent higher than the net inflow of PhP 19.2 billion in the same period of
the previous year (Part II Table 13a).

D.1.2 January to December 2013

Net FDI inflows during the 12 months of 2013 amounted to US$ 3.9 billion, higher by
38.0 percent from US$ 2.8 billion net inflows posted in 2012. Equity other than reinvestment of
earnings during the period reached US$ 662.0 million, lower by 50.8 percent or US$ 1.3 billion
in the previous year (Part II Table 14b). The bulk of investments came from Mexico, Japan,
USA and British Virgin Islands. Industries that mainly benefitted from the investments include
manufacturing; water supply, sewerage, waste management and remediation; financial and
insurance activities; real estate; and mining and quarrying.

Net inflows of reinvestment of earnings reached US$ 700.0 million, lower by 34.0 percent than
US$ 1.1 billion posted in the year. Meanwhile, net debt instruments registered an inflow of
positive US$ 2.5 billion in the 2013.

20
 Approved Foreign Investments, Q4 2013

Figure 6b
Balance of Payments FDI (in million US$)
January December 2012 and 2013

4,500
3,861
4,000
Jan-December 2012
3,500
.

Jan-December 2013

3,000 2,797
(in million $US)

2,494
2,500

2,000

1,500 1,345
1,061
1,000 700
662
391
500

Source: BSP

In peso terms, FDI in the BOP for January to December 2013 recorded a net inflow of PhP
162.0 billion, expanding by 35.5 percent from a net inflow of PhP 119.6 billion in the same
period last year (Part II Table 13b).

21